- We will get to the bottom of those “compare at” prices at off price stores and outlets,
- An introduction to the term “anchor pricing,”
- Why thrift stores are making a major branding mistake by pricing up certain items,
- Why trends are so emotional (and a key part of planning a product assortment),
- And introducing…THE PYRAMID OF MERCHANDISING!!
“TJ Maxx Sued Over ‘Compare At’ Prices,” ABC News.
“Bargains at Winners not always what they appear,” Melissa Mancini, CBC.
The new Clotheshorse PO Box: 69 Main Street, Box 16 New Providence, PA 17560
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Transcript
Picture it: 2026, Planet Earth. We’re facing climate change, water scarcity, plastic pollution, the rise of fascism, the existential threat of AI, and sometimes, in a very retro way, the fear of nuclear war. Here in the United States, where I live, literally the worst and most stupid people are running the country and now we get to worry about being murdered in the street, watching our friends and loved ones being abducted by ICE agents, and oh yeah, we can’t afford healthcare. If it’s a really bad day, we also wonder if we’ll be in some sort of prison camp when the nuclear missiles start flying.
All that to say: we have a lot of very serious stuff happening around us that requires our immediate attention and involvement. And the thing is: we CAN change what is happening around us, but we have to be focused. We have to work together. And we kinda have to save our energy for what really matters.
So imagine it’s 2026 (jk you don’t have to, unless you’re listening to this in some better future where Donald Trump is gone and AI just turned out to be another short lived get rich quick scheme).
It’s 2026 and serious shit is going down…and you’re on the internet…posting anti secondhand reseller bullshit. The tired, boring classics like “Resellers are taking all the good stuff from thrift stores” and “Resellers are the reason prices are higher at thrift stores.”
I’m not here to debunk those false claims yet again, because honestly, I’m tired of doing it. And if you want to learn more, you can listen to the entire series of episodes Alex and I did a few years ago. Or you can even just check out a recent post I did about it on Instagram.
But I do want to talk about thrift store prices a little bit more, because honestly, in my opinion as an expert in assortment planning, merchandising, and product strategy…I’m here to tell you that thrift stores are actually making a big strategic mistake with some of their pricing.
In part 8 of this series– I’m with the brand– I talked all about “perceived value,” and different ways that brands use merchandising, branding, and even minor product details to increase our perceived value of a product. In other words: how brands get us to pay more for something. And in the last act of that episode, we started to explore how location–like actual physical location–affects our perceived value of a product.
One great example of how location ties into our perceived value of a product and what its best price will be is thrift stores. Now, as we’ve talked about countless times here on the podcast, whether a thrift store is nonprofit and has a charity component attached to it, or is literally for profit, making as much money as possible is the goal.
For one, it’s really expensive to run a thrift store in this day and age… for all the same reasons it is expensive for US to live in this day and age (rent, tariffs, skyrocketing utility prices, general inflation). Thrift stores have to deal with another issue that hopefully none of us are facing right now: there is just so much low quality product coming in the doors every day. Sorting and disposing of that is a huge financial burden. And once again, whether a thrift store is nonprofit or for profit, they want to have as much money left over as possible after covering all of those expenses. So, thrift stores want to optimize their pricing.
Another thing I just want to call out here, which I noticed in a recent post on Instagram, is, you know, in the UK and Europe thrift stores are often called charity shops, or op shops. Here in the United State, we call them thrift stores. I think this has created this misconception that here in the United States, thrift stores, for the most part, are for profit. And that’s actually not true. About ⅓ of secondhand stores here in the US are nonprofit, including large chains like Goodwill, Salvation Army, AmVets, and Community Aid…along with smaller local thrift stores. I have mentioned in the past that I am a huge of the MCC (Mennonite Central Committee) thrift stores. We have a bunch here in Lancaster County and their goal is raising money for their projects around the world, including refugee resettlement. I don’t know why we call them thrift stores. It seems very American to me that we would focus more on the low price of it all and the deals to be had versus the giving component of it.
But regardless of the name (thrift store or charity shop), we have a pretty low perceived value in terms of the product to be found in the stores. Meaning, we expect it to be cheap because it is “thrifty,” or secondhand or a non-profit store. Maybe all three at once. Put a pin in that idea for a moment: the expectation that prices in thrift stores should be low.
So thrift stores have rising expenses. And they also want to maximize their “profit” after selling stuff. And this has led to, especially in the past few years, walking into a thrift store and finding things that feel priced to what I would call a “market value.” Meaning someone is using an app, maybe even AI, to scan items and see what they’re listed for or selling at on eBay, Etsy, or any of the resale apps.
And listen–if you don’t know about perceived value and pricing strategy, this makes perfect sense. If someone is selling that vintage plate on eBay for $30, why wouldn’t that same plate be $30 at the thrift store? Yeah, if you’re AI or you only see things from a black and white perspective, that price makes sense. The problem is, as I’ve said throughout this series, the reason we buy something when we buy it, where we buy it, and how much we are willing to pay for it is 95% psychological. And this is where I think thrift stores run into a problem…
Back to that $30 plate. Why am I talking about plates? I have no idea. I guess it just feels like a neutral item. Anyway, if you see that item, at a vintage store for $30. It feels like the right price because it is in a curated, nicer environment, right? If you see it at an antique store, you would feel similarly, perhaps the antique store could charge even more.
If those vintage stores or antique stores are in more wealthier neighborhoods or have just like a really much more elaborate store buildout, feel really beautiful. There’s like this high level of customer service. You might pay $40, $50, $80, $100 for it. I’m not saying you, but the customer in that space, right?
All of these places have a higher perceived value built into them: we expect vintage and antique stores to be more expensive, the experience of shopping in them feels “more premium,” and lastly, if these businesses are run by savvy owners, the price of that plate makes sense when compared to the prices of every other item in the stores. Like they wouldn’t be selling a vintage plate for $30, but then a mint condition vintage coat for $5. Because if they WERE doing that, suddenly that $30 price for the plate would feel like a scam. Why pay $30 for a plate when you could have a whole ass coat for $5?
Now we know that most likely thrift stores aren’t going around to vintage stores looking for prices. Instead they are looking online, possibly using AI-driven apps, taking photos and searching via Google lens, or just going straight to the platforms and running a search: eBay, Etsy, Poshmark, etc.
Now, unlike a cute vintage store with amazing service, these platforms don’t serve a lot of “vibe” or “branding.” But what they do have is this almost infinite reach to customers all around the world. There is seemingly a person out there for everything, even if it takes some time for that person to show up and buy that item. Often customers are looking for that specific plate or whatever, so they are willing to pay a higher price.
So, vintage stores, antique stores, eBay, Etsy…they have the ability to successfully charge these higher prices.
A thrift store just does not. Sorry thrift stores, but it’s true.
When we walk into a thrift store, we expect stuff to be cheap. And that same plate that would have sold for $30 at a vintage store or on eBay…in a Goodwill or a Savers, $30 feels outrageous. One, it’s so far out of line with how everything else is priced in there. Doesn’t make any sense to us. Next, it’s the vibe of a thrift store, right? It’s not like beautifully merchandised, vibes, scented candles, elite customer service. It’s a thrift store. There’s fluorescent lighting. It might be a little dirty. It’s crowded, it’s disorganized. There’s no merchandising other than that’s where all the plates go. That’s where all the shirts go. And because it is arranged that way, because “vibes” are kinda low, we expect things to be cheap. It is a scavenger hunt. And when we run into a $30 plate, It is shocking. And it’s going to be really challenging to sell that plate for $30.
And on top of that, it kind of pisses us off, right? We’re like, why? The gall, right? There are whole subreddits where people are just showing photos of outrageously priced items in their local thrift store. And it is wild. You could take that same product, clean it up, take some photos, and put it on eBay and you probably would get that price for it. It might take some time, but there’s a person out there who is the match for that and will pay any price. It’s just not happening in thrift stores.
But also: if most of the stuff in the thrift store is under $10, $30 feels bananas. And TBH, $30 is on the low end of some of the wild prices I have been seeing at thrift stores. These prices are so much higher than the vast majority of the stuff in these thrift stores, that they feel artificial, scammy…and untrustworthy.
Yes, I understand why thrift stores want to make more money, why they need to make more money. I understand all of that. But I actually think this is a major strategic error because rather than charging half of the sort of like value of that item or even less and selling it, turning it, making more space for more things, these things just sit there for a really long time. And while thrift stores, although some do, are generally not buying their inventory, I always view inventory as cash. That’s what I talk about with my clients, that all the products in their inventory are money that had a spell put on them, and they need to have the spell broken as fast as possible to turn it back into money. Even in a thrift store–where the product is technically free–there is money being invested into it that needs to be recovered. That money is the cost of sorting that item, pricing that item, and stocking that item on the floor. The wages of the workers doing that! So yeah, really, nothing on the floor at a thrift store was ACTUALLY free to the thrift store. And if I were in charge of the thrift store, I’d be like, “listen, rather than this item sitting in the case for 6 months, a year longer at $30. Let’s charge $10 and get it out the door now, make room for something else, or 5 even.”
Beyond that, it creates a level of distrust between customers and thrift stores. Now customers think these stores are greedy. Out to rip them off. I have no doubt that this increases theft and tag switching in these stores. When you feel like the thrift store is just as greedy and unethical as every other business out there–even if this store is technically non-profit–you almost feel good fucking them over. And furthermore, trust is an essential part of emotional branding. When you trust a business, you show up more often. You don’t throw things on the floor in the store. You’re nicer to the employees. And when a brand builds up enough trust with you, you might be comfortable paying higher prices because your perceived value of everything they sell increases. Thrift stores seem to be forgetting about that.
Once again, there’s this whole, highly debunked myth going around the internet that gets repeated over and over again: the myth that thrift store prices have increased because of resellers. That’s not what’s happening. Thrift store prices have increased because thrift stores now have the ability to see what resellers MIGHT be making on those products in other places…but it’s actually a very bad strategy for them because the perceived value of anything in a thrift store is lower. And I don’t think it’s working out very well for them. But it sure is effective at distracting people on the internet from more serious issues…
Welcome to Clotheshorse, the podcast that really wants you to wear your skinny jeans if you love them.
I’m your host, Amanda and this is episode 259, part 9 in an ongoing series about brands and how they influence our identities and drive consumerism. If you are new to the podcast or need a refresher because I took a little break from this series, go back and get started with part 1.
In this episode we are going to continue to unpack the vibes and strategies around the number you see on a price tag. And specifically, we’re going to talk about how we perceive prices in relation to all of the other prices around them. We touched on it for a second in the intro: how thrift stores are pricing some things so far out of the normal range of everything else around them, that they feel artificial and therefore, untrustworthy.
To get to the bottom of how prices influence other prices, we are going to unpack two different aspects of modern shopping:
- The “compare at” prices we see on tags and stickers at off price stores like TJ Maxx, Marshalls, Home Goods, outlets etc.
- The mysterious (and very effective) pyramid of merchandising, an assortment planning strategy that was originally pioneered by department stores of the last century.
Before we jump into all of that, I must remind you that until I get all of the cats in my feral colony spayed and neutered, you can get 50% off EVERYTHING in the merch shop with the promo code THEPRICEISRIGHT. You will find that code in the show notes. Here’s where I am with Operation Snip Snip…
I also just wanted to thank everyone who sent me mail over the past few weeks since I announced my PO Box!
When Dustin and I are feeling like Grandpa Simpson, we like to say things like “I remember when gas was less than a dollar a gallon” and “Kids these days just don’t know what it’s like to be bored.”
And listen, I don’t know if kids spend a lot of time being bored these days, but OMG did I spend a lot of time being bored as a kid. In the car, at the grocery store, running errands with my grandma…seriously any time I heard the list of things to do that day involved going to Sears, I knew it was going to be so boring (even though the appliance department in our local Sears had a hot dog stand). And one of the many boring things I had to do as a kid was go back-to-school shopping with my aunts, mom, cousins, and grandma at the outlets in Reading, PA. Back in the day–when clothes were still being made in the US–there was a massive outlet complex in Reading where one could get “slightly irregular” jeans, underwear, pajamas, and more for a song. So every August, we would pile in a pair of cars and make the long (and super boring) drive to the outlets in Reading. And while today outlet malls are filled with all kinds of stores and places to get snacks, the big Vanity Fair/Wrangler/Lee outlet complex was bare bones. Just some big buildings filled with racks upon racks of deals. There were picnic tables outside to eat a packed lunch that you brought with you.
All day we walked around, doing the boring business of getting school clothes, pausing only for the aforementioned packed lunch that filled a cooler in my grandma’s trunk. I usually brought a couple of books to get through the day, while my brother and cousins ran around hiding in racks, until one of the adults yelled at them.
My family loved a bargain. And it wasn’t just on slightly irregular Lee jeans. You see, school shopping didn’t end with the annual trip to Reading. A week later we would take another long and boring drive to Hanover, PA to finish the project at Value City, a massive off price department store. At least Value City had a toy section, so it wasn’t completely boring. Our part of rural Pennsylvania had not yet acquired TJ Maxx. And Nordstrom Rack didn’t exist yet. So Value City it was, where one could find national brands at a fraction of the price. And at that point, it was mostly true. There were good deals to be had. Most of the inventory at Value City really was overstock and closeouts from department stores.
And you only had to look at the tag on the item to see just what a good deal you were getting. Those Reebok sneakers might “compare at” $49 at a real department store, but here at Value City, they were just $19.99. SOLD.
Over the years, Value City went away. The massive outlets in Reading closed (although there was a brief and exciting window at the end of the 90s/beginning of the 2000s when there was a Delias outlet in Reading). My family shopped in new places for hot deals. Outlet malls popped up near every tourist attraction. Seriously, for some reason they seemed to be built near amusement parks (I mean, it makes sense to me). Strip malls began to fill up with Nordstrom Rack, TJ Maxx, Ross, Home Goods, Marshalls, and Big Lots. Stores filled with beguiling deals, all at a fraction of the “compare at” price.
And if you’ve ever been to any of these stores in your life, you can actually picture the price tag: The price of the item is front in center, in larger numbers. But above that, in smaller letters and numbers is “Compare at _____.” The blank is always a significantly higher price, sometimes as much as 2, 3, or 4X the price the store is charging. And every single item in these stores has that same tag format. The price the store is charging you, with the “compare at” shown just above it.
Now, earlier in this series I debunked the illusion that the products in all of these “off price” stores are still mostly overstock and closeouts from department stores. No, most (but not all) of the inventory in these stores is made specifically to be highly profitable while sold at a lower retail price. It is made specifically for these off price stores and outlets. To learn more about that, you can also go way back to the early days of Clotheshorse and listen to the episodes I did with Salisha, who literally worked for multiple brands doing product development for off price stores.
So if we know that a lot of the products in these stores were made specifically for these stores, then why do they have a “compare at” price on the tag. Like, what are they comparing these prices to…knowing that the items aren’t available anywhere else?
Let’s see what the TJMaxx website has to say about that:
“Many of our price tags include comparison prices, which are references to regular retail prices of the same or similar items at full-price department or specialty retailers. Where identical items are not available, we compare to products of a similar type, quality and style. Prices vary among other sellers and change over time, but our buying staff’s goal is always to provide you with a useful comparison based on prices at which we believe substantial sales of the same or a similar item have been made at full-price department or specialty retailers in the area or online.”
Nordstrom Rack—btw did you know that there is a Nordstrom podcast?–says pretty much the same thing on its site: “This comparable value and corresponding percentage are based on what the item, or similar item, was originally offered for by Nordstrom or elsewhere in the market, which may have been reported to us by the manufacturer.”
So basically, these “compare at” prices are really in most cases just based on what the buyers might consider a “similar item,” which feels a bit subjective, right? Like similar in fabric? Similar in style? Similar in that both are the same category of product but that’s about it? It’s unclear. And if this sounds a little sketchy to you, well you’re not alone.
In 2015 and 2018, two class-action lawsuits accused TJX (parent company of TJ Maxx, Marshalls, Home Goods, Sierra Trading Post, and Winners) of intentionally misleading customers using these “compare at” prices. The first lawsuit–filed in California– alleged that TJX was “using deceptive comparative prices to trick its customers into mistakenly believing they are saving specific and substantial amounts on name brand items.” The second lawsuit was filed in Florida. According to court documents, the case alleged that TJX was marking products with a “higher, fictional amount” to “advertise a phantom markdown.” Ultimately the 2015 case was settled and the 2018 case was dismissed…and I have a feeling that is why the TJMaxx website now has that little blurb explaining its comparison pricing….and I bet that AT BEST, 1% of customers have ever read it. So the vast majority of customers think that the “compare at” price is real.
That said–it feels like a legal and ethical risk to be engaging in this comparison pricing at all. As we have discussed throughout this series, trust is an essential part of emotional branding. When a brand loses that trust, its perceived value falls. Customers walk away (or at least spend more money elsewhere). And around the time of those lawsuits in the late 2010s, every media outlet was doing an investigative report along the lines of “Bargains at TJMaxx, etc are not always what they appear.” I’ll share some of them in the show notes. Even in situations where journalists could find the same, exact product elsewhere, that “compare at” price was significantly inflated. Word was getting out that the “compare at” prices were incorrect (at best) and super devious and dishonest (at worst) So why would these off price stores continue this “compare at” strategy that has the potential to alienate customers?
Well, because it works. And most people just don’t question it.
Remember, the conceit of these off price stores is that the customers who shop there are smarter than everyone else because they aren’t paying full price. I didn’t say that was based in facts, but that’s at the core of the branding of TJ Maxx (Maxxinistas, after all) and every other off price store. The “compare at” price is just part of that branding in action.
Now some people might say that “comparison is the thief of joy.” They might even use some sort of curvy font to create word art for Facebook to share that message. But also, comparison is actually a highly effective way to sell anything, anywhere. It’s called “price anchoring.” Basically, show a customer a high price, then every lower price feels like a hot deal, even if it’s really not. Even if that higher price has nothing to do with the actual product in that customer’s hand. It’s why we get excited about a sale section in a regular store, where the full price is crossed out or still hanging out there with a sale sticker next to it. It’s why on websites the full price is always crossed out (but still visible and readable). Even if the discount is a couple of bucks, we’re still motivated to make a fast decision because the current price is lower than the original price.
The “compare at” price tag functions as a branding moment (“only the smartest shoppers are at TJ Maxx”. It also creates a sense of urgency (“I must buy this right now before it is gone forever. Deals at this price won’t last long.”) ←-seriously I’ve heard that in commercials for off price stores. What it does not do is represent facts.
As we talked about in the previous installment of this series, our perceived value of any product or service is directly influenced by the other prices and products swirling around us. Those prices include those from similar brands and businesses (or at least, what we PERCEIVE as similar). And of course, as we just discussed, it also includes any other “anchor prices” on that product.
But also…our perceived value of something is impacted by the other, similar items around it in the same space: the same store, the same website, maybe even the same mall.
And over many decades, smart retailers have found a way to use these adjacent products to create an entire product assortment based on pricing tiers (sometimes called price buckets, a price matrix, a pricing architecture).
This strategy was developed by department stores in the middle of the last century and it’s been largely adopted by every major retailer around the world, no matter what that retailer sells: coffee, groceries, clothes, shoes, home goods, makeup…it doesn’t matter. This strategy of assortment planning is called “The Pyramid of Merchandising” and it is absolutely my favorite thing to teach small business owners because one, it works, and two, once you know about it, you can’t stop seeing it everywhere you go.
“Assortment planning” is pretty much what I did all day every day as a buyer and it’s really something that every business owner should be doing.
Essentially:
- Assortment =the full selection of product and services a business offers
- Assortment planning is the process of planning and selecting the products a business wants to sell/offer during a particular period to maximize profitability. It’s one big logic problem.
- And yes, it usually involves a lot of spreadsheets and visual boards when you’re planning for a retail business.
So now, dear listeners, I am going to teach you about the pyramid of merchandising, something that others pay me a lot of money to do.
Are you ready?
First, let’s picture a pyramid. Basically a three dimensional triangle. Please do not picture a pentagon, which does happen sometimes when I am teaching this concept.
Let’s think about the attributes of a pyramid:
- Widest at the bottom
- Narrowest at the top
- If we divided the pyramid into three “slices” of the same height, the bottom slice would be the biggest. Why? Because that part of the pyramid is the widest section. Conversely, the slice at the top would be the smallest because that’s the narrowest part of the pyramid.
Okay, great. We know our shapes. What does this have to do with pricing?
What if we also thought of those slices as different price buckets. The bottom of the pyramid–that biggest slice–would be the lowest priced stuff. The middle of the pyramid–that medium sized slice–would be the slightly more expensive stuff. And the top–the smallest slice by far–would be the most expensive items.
Here’s what’s interesting about those slices: we know that they are in order of price, right. The lowest prices are at the bottom, the highest at the top.
But we also know that the slices get smaller as we move upward, to the highest prices. And that’s because in just about every business, that’s how the sales of products at those prices shake out:
- The lowest prices usually comprise the largest part of total sales for the business.
- The highest prices are usually the smallest part of total sales for the business.
In most of the businesses I have worked with throughout my career, the breakdown has been pretty similar:
- Bottom: 55%
- Middle: 35%
- Top: 10%
These percentages apply to the portion of sales each level drives, but also, a target for inventory and product for that business.
Now, department stores, in a move of (perhaps) toxic positivity, usually do not refer to these slices of the pyramid as “bottom, middle, top,” they call them “good, better, best.” Many of the brands that have employed me in the past have also used this “good better best” labeling (shorthanded as G/B/B), so I am going to use those terms now, too. More cheerful, right?
- Customers will often buy multiples of items in the “good” level of the pyramid. Think basic tees, socks, underwear, accessories.
- Customers may also buy multiples of the “better” level, but not as often.
- Only a few customers will buy the items at the top, in the “best” level. But the items at the top “elevate” the items at the bottom, making them seem like better deals (ah, price anchoring strikes again).
- G/B/B (good/better/best) is different by category…but even types of items within a category could have their own g/b/b. Examples: necklaces vs. earrings, dresses vs. sweatshirts
- In general, standard retail strategy is that the “good” items (that bottom level of the pyramid) should be the most profitable because a business will sell so many of them, that the math will never math for their business if the “good” stuff isn’t selling at a good margin. And so strangely enough, the most expensive stuff, the items at the top of the pyramid are often the best “deals” because they aren’t marked up as much. You are getting more value for the price.
Often retail buyers will take an idea–let’s say a sweatshirt–and offer three different versions of it, based on the pyramid:
- The bottom version might just be solid, no graphic or a very basic graphic: least expensive
- The middle version might have more details, like beads on the drawstrings and a much cooler, desirable graphic.
- The top (sometimes called “pinnacle”) version might be cashmere or super oversized, have a complex dye treatment, or be super embellished.
But seriously, the pyramid is EVERYWHERE you go:
Apps:
- Premium version with all features and no ads
- Paid version with more features, includes ads
- A free version with limited access & lots of ads
Coffee shops:
- Complex drink special or blended drink
- Flavored latte
- Basic coffee
Nail salon:
- Pedicure with foot mask and leg massage
- Pedicure with foot mask or other treatment
- Basic pedicure
Jeans:
- Premium brand (like A. GoldE)
- Mid range brand (like Levi’s)
- Store brand jeans
Drugstore makeup section:
- Revlon or Loreal
- Maybelline and Covergirl
- Wet N Wild and e.l.f.
(you will also see this at Sephora and Ulta)
Ultimately the math for a business maths the best when all three levels of the pyramid are represented in every category and product.
- The bottom of the pyramid is great for new customer acquisition. Customers that want to be a part of a brand but can’t afford the “better” and “best” product. A great example of this played out when I worked at the “feminist” brand. Basically the brand only had the middle ($40 t-shirt) and top (suits that cost several hundred dollars). I recognized that the brand had a very engaged, loyal social media following…but buying into the brand at $40+ was just too challenging. So I started bringing in things that were under $20: pins, stickers, pens, patches, various other non apparel gift items. And immediately we saw more orders and higher sales. Even better, those “good” (bottom of the pyramid) items often made up the first purchase, but soon customers would move through the pyramid with subsequent orders. First a pin, next a tee, and finally a suit or button up. Moreover, existing customers added multiple pieces of those under $20 items to their carts, driving up average order value (another important ecommerce metric).
- When it comes to category specific pyramids, there is a certain customer base that will always opt for the “better” (middle of the pyramid) just out of habit or assumption that it is a nicer item than the lower priced version. And that’s great, too!
- In general, the top of the pyramid accounts for the least amount of sales…but it “elevates” everything below it…making everything look like a better value. But also, it’s kinda the bait that brings customers in…they see the super expensive statement piece in an ad or marketing email…then they buy the lower priced items.
The thing about the pyramid of merchandising is yes, it provides a variety of options at different price points that accommodate a customer’s budget…but more importantly, it has a deep emotional impact on every shopper. Less expensive things look like a bargain next to more expensive. Items in the middle feel more reliable. And when we think of this brand–why we like it, keep showing up for it–we’re probably picturing the items at the top of the pyramid, even if we’ve never bought them. Yes, pricing is deeply emotional. But what if I told you there’s another way of looking at product assortment via a pyramid that might be more emotional?
As a buyer, one of my jobs was to identify fashion trends before customers even knew they existed. I scoured the internet and social media for things that looked interesting. At some of my jobs, we actually had a whole trend department that did this job, grouping everything together into concepts that we could design and buy into. And most companies buy this trend forecasting information from companies like WGSN…that’s how you see the same stuff over and over again at every store. It’s not because these trends are cooler or better…it’s just that a bunch of brands decided to make everything based on these trend forecasts. In part four of this series, I talked in more detail about the trend forecasting industry and how it’s ultimately reducing the breadth of styles, silhouettes, colors and product stories available in retailers across the world. So go listen to that if you need a refresher.
Trends help retailers create merchandising stories, in stores and online. It gives them a reason to email us yet again. But most importantly: trends keep us shopping. And trends are hyper emotional for all of us. We live in fear of being “out of style,” fretting about wearing skinny jeans (even though we love them). I think a lot of this starts in our tween years, when other kids are fucking vicious about clothing. I feel like kids started actively making fun of my clothes around sixth grade, when I was still wearing smaller children’s sizes (major late bloomer here). I dressed like a child, not like a “young woman” or whatever tween girls are taught to aspire toward. And yeah, I always felt so embarrassed about it. Now I don’t care as much, because someone has always been making fun of my clothes. A guy once stopped his car, turned it off, got out, locked it, then walked over to me just to say “It’s not Halloween heheheh” then unlocked his car, walked back over to it, and drove off.
I didn’t feel embarrassed then, but it took a lot of practice to grow skin that was thick enough .If you’ve been following me long enough, you know I grew up poor. Even the trends that trickled down to rural PA were still out of reach for me. As I started high school I realized that I would never be one of the popular kids with nice clothes, so I just started doing my own thing. Most of my clothes were thrifted and/or DIY projects. And yeah, other kids at school called me “Punky Brewster” (major compliment). But I was having fun getting dressed, rather than worrying about what others thought of me. I continued this through my career in fashion because I could never afford the expensive clothes that my coworkers wore. So I stuck with vintage and secondhand (big time eBay user).
The thing about fashion trends: we adopt them out of fear. Fear of not fitting in. Fear of social rejection. Maybe even fear out of guys stopping their cars just to tell us “it’s not Halloween.” And trends keep us shopping. If all of our favorite clothes feel “out of date,” we’ll buy new ones…even when we don’t need them. And sometimes these trends are just the function of the cost cutting measures of fast fashion: faux leather, crop tops, unlined dresses, etc. Like they aren’t even trends created by THE PEOPLE. Just the industry.
That said, the “trendiness” of an item, where it is in the trend cycle, is a big part of another “pyramid of merchandising” strategy.
Let’s picture our pyramid and its three slices again.
- The bottom of the pyramid is the most easily understood, basic, kinda essential stuff. Things with the widest range of appeal. Not out of trend, but kind at the peak of the trend cycle, or maybe even past it (but still widely enjoyed): most people recognize this trend and want to be a part of it. Other ideas from the bottom might be “evergreen,” like skinny jeans (sorry, I think they are here to stay), Hello Kitty or Disney…but even HK and Disney, with their incredibly loyal fan bases, have their own peaks and valleys in the trend cycle.
- The middle of the pyramid is stuff that is slightly ahead of the trend. A lot of people get it, but not everyone. In theory, it will continue to grow in its trendiness, moving it to the bottom of the pyramid. Sometimes certain trends hit this part of the pyramid and kinda die there, never catching on with everyone ever.
- The top is very specific, a new idea or early in the trend cycle (but could end up working its way down). It’s an “emerging” trend. The items on the top lend credibility to the bottom. The top makes the bottom cooler.
The breakdown of product sales (and therefore buying budgets/inventory) is pretty identical to the price pyramid:
- Bottom: 55%
- Middle: 35%
- Top: 10%
Some examples:
Jeans:
- Ultra low rise, a la the 00s
- Wide leg/baggy jeans: think the oversized silhouette of Meals Chef Pants
- Black skinny jeans
I swear jeans just move back and forth around the pyramid every few years. Believe it or not, there was a time in the 00s when skinny jeans were at the top of the pyramid: very niche, very exciting and new.
Condiments:
- Chili crisp
- Sriracha
- Ketchup
But also: Cold shoulder tops. High low hems. Dresses with side cut outs. Technicolor tights. Peter pan collars Statement jewelry. BELTS! Hats. Seriously I could do this all day.
And each of us has our ideal “comfort” level on the pyramid.
- Some of us feel safer in the bottom, where we know we’ll kinda blend in.
- Others take pride in being just a little bit ahead of the trends, maybe they are the “fashion” person at the office, so they are the middle pyramid person.
- And then they are people like me, who have made a lifestyle out of making strange men get out of their cars to helpfully remind us that it is not Halloween. We’re constantly finding ourselves at the top of the pyramid.
But like the price pyramid, this pyramid of mass appeal and trendiness only works if all three levels are represented in a product assortment. Unlike the price pyramid, a buyer generally doesn’t take one idea and spread it across the pyramid, but they will make sure that each product category has items from each level. They will buy the most inventory and styles from the bottom of the pyramid, less from the top. And having all three pyramids make customers feel good about the offering, secure in their decisions. Maybe you’re there for the skinny jeans, but you feel like your choice is decent because you see the crazy trendy ultra low rise ones in the window. “I can’t be that far out of style if the skinny jeans are there.”
Listen, I am fascinated by trends. I love watching for new ones and predicting what will happen next. After so many years working in fashion, I can spot a trend from miles away. It’s part sociology, part psychology, and lots of people watching.
But I also think fashion trends are mostly a marketing tool. A way to sell more stuff. And worse, a way to feel superior to others. To be mean to someone when you just can’t think of another reason. Or maybe you’re like “I would never judge someone based on their skin color or body size, but I will absolutely make fun of their skinny jeans.” Like what? Ew. The success of trends as a marketing tool really depends on the worst inside all of us: our own desire to feel safe but also superior.
Last year when Dustin was on tour, a friend of his asked how Clotheshorse was going. She told him “I stopped listening because I just feel too poor for sustainability.” And hearing that made me so sad. Because I have worked so hard to create a community/platform that is for all of us who feel left out of both fashion AND sustainability. One of the most impactful things any of us can do is BUY LESS NEW STUFF.
That means unpacking all of the levers that are being pulled to sell us stuff. Compare at prices. Cause marketing. Greenwashing. Store merchandising. Sassy social media profiles. Price pyramids. Trends. It means seeing them. Naming them. Then distancing ourselves from them. Fortifying ourselves against them. And that’s something all of us can afford to do.